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Household debt

March

February 24, 2025

These two issues should frame the election. Don’t hold your breath

Tension between Australia’s cost-of-living crisis and our record household wealth lies at the heart of this federal poll. Real, long-term thinking is needed.

Transmission towers in Victoria’s west. The cost of building new connections to renewable generation projects has been one reason the price of energy has spiked.

Households face up to 9pc power bill rise amid coal plant outages

But analysts warn that billions of dollars spent on rebates to woo voters are “sugar hits” that could be better spent on long-term solutions to the increases.

After two years of cutting back, Australians are finally loosening their purse strings as confidence rises.

The six charts that show the consumer comeback is here

After two years of cutting back, Australians are finally loosening their purse strings as confidence rises. But a full-blown boom seems unlikely.

There is still time for savers to secure a good deal.

The three habits helping Australians build the most wealth

Amid record levels of economic inequality in Australia, a respected survey of household trends shows how average people are building their savings.

February

NAB said most home owners preferred to maintain current repayments, especially as rates go down, allowing them to pay off loans more quickly

Big banks won’t automatically lower repayments after rate cut

NAB, CBA and ANZ require customers to “opt in” to get a reduction in monthly repayments, as lower interest rates were applied on Friday.

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January

Some Sydney private schools will be charging more than $50,000 a year.

Private schools raise fees at three times rate of inflation

For a decade or more, private schools have increased their fees by far more than the CPI. This year is no different, and schools have a range of explanations.

The generational transfer of wealth in Australia is underway, but younger generations are struggling under the burden of high debts.

7 revealing charts about wealth in Australia

The generational transfer of wealth in Australia is underway, but younger generations are struggling under the burden of high debts.

December 2024

Bruce Chapman says HECS debt should not affect graduates’ ability to buy a house.

HECS architect wants student debt ignored when assessing home loans

Bruce Chapman, who created the income-contingent loan system for students, has hit out at the political fiddling the system has faced.

November 2024

Victoria now has the highest rate of home-loan arrears across all Australian states, taking over from Western Australia.

Victorian mortgage arrears top other states

Fresh data from ratings agency S&P shows Victoria has the highest rate of home-loan arrears of any Australian states, overtaking Western Australia.

These three scenarios show how HECS debt hits your borrowing capacity

Instead of paying his student loan down faster with extra repayments, this 26-year-old chose to divert his savings to build a house deposit. It paid off.

The Greens have upped the ante on Labor, promising to cancel all student debt.

Greens plan to cancel student debt unfair to poor, says HECS architect

In what looks like an act of one-upmanship, the Greens will promise to cancel all student debt, not just 20 per cent like Labor. Experts say the idea stinks.

Labor’s student debt reduction plan benefits male students more than females.

$16b uni student debt fix helps men more than women

Those paying tertiary fees will have to wait until at least 2027 for the overhaul, as analysis shows it will assist male graduates erase their liability sooner.

October 2024

There is good debt, and bad debt.

How to manage good, bad and dreadful debt

Dreadful debt destroys wealth, and credit cards are top of the list.

September 2024

Penny Locaso says undertaking a PhD in psychology will cost her nothing while an honours year comes with a $30,000 price tag.

$30k for honours degree makes switching careers an expensive choice

Older generations are being lumbered with more student debt and for longer as students try to negotiate an irrational and unfair system.

July 2024

Cash Converters said retail store revenue increased by 11 per cent in 2024 after 600,000 transactions took place in its pawn shops.

Booming Cash Converters revenues point to squeeze on the poor

The ASX-listed pawnbroker told investors the increase was partly tied to “mainstream finance” being “more difficult to access” for many of its customers.

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North Richmond in Sydney’s west. The volume of refinancing has begun to slow, likely pushing delinquency rates lower.

Mortgage cliff turns into ‘a wave’ that is already subsiding

The tailing off of refinancing is fuelling a rosier outlook for housing delinquencies as borrowers come to terms with higher-for-longer interest rates.

Attorney-General Mark Dreyfus will announce the overhaul on Monday.

Labor reveals personal bankruptcy overhaul

The threshold for involuntary bankruptcy will rise to $20,000 and Attorney-General Mark Dreyfus will also launch consultations for a mini-bankruptcy regime.

To cut the cost of your “wants”, you’ll need to come up with some sacrifices.

How the 50/30/20 budgeting hack can unlock your finances

This straightforward strategy suggests dividing your income into three buckets: needs, wants and financial goals.

May 2024

ASIC chairman Joe Longo: “It’s time for meaningful improvement.”

Lenders creating ‘unnecessary barriers’ for struggling customers: ASIC

With living costs high, ASIC chairman Joe Longo has issued a stern report on bank hardship policies. ABA chief Anna Bligh says processes are being improved.

Rising interest rates and power prices mean Adam and Erin Foster’s dream of buying their first home keeps “slipping through the fingers”.

$300 off every household’s power bill in cost-of-living cash splash

In addition to a tax cut from July 1, every household will receive an electricity bill discount as part of a $7.8 billion cost-of-living package.

Original URL: https://www.afr.com/topic/household-debt-hor